When a Company Uses Straight-Line Depreciation and the Half-Year Convention

question 5

Multiple Choice

When a company uses straight-line depreciation and the half-year convention, assets with a five-year life:

• A) Will have the same depreciation expense in the first and last years.
• B) Will be depreciated over six accounting years.
• C) Book value will equal its salvage value at the end of its economic life.
• D) All of the above statements are correct.

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